Part I Simple Partnership Liquidation Schedule of Cash Available (17 Points)

The partnership of Joe and Cindy is in the process of liquidation. On January 1, 2020, the ledger shows account balances as follows:

Cash $20,000 Accounts Payable $32,000

Accounts Receivable 60,000 Joe capital 56,000

Inventory 42,000 Cindy capital 34,000

On January 10, 2016, Inventory is sold for $44,000, and during January, accounts receivable of $54,000 is collected. No further collections on the receivables are expected. Profits are shared 65 percent to Joe and 35 percent to Cindy.

Required:

1. Prepare a schedule showing how the cash available on February 1, 2020 should be distributed. Show calculations.